RCom bidders put stringent conditions with their bids

MUMBAI: Bidders for the bankrupt Reliance Communications (RCom) have put stringent conditions with their bids, making it more difficult for lenders to strike a resolution plan in what already is a complex process due to sectoral challenges. RCom and its two subsidiaries owe ₹86,187.58 crore to financial creditors.
The four bidders for the company are seeking immunity from the company’s inter corporate guarantees and also exemptions on the company’s liabilities to the government for fees and other payments such as spectrum. Lenders are hence expecting a long-drawn-out recovery process despite getting four bids as some of these conditions can only be given by the government.
Reliance Jio Infocomm, Bharti Airtel, UV Asset Reconstruction Co and private-equity firm Varde Partners have bid either partly or for all the assets of bankrupt RCom and its two units, Reliance Telecom Infrastructure (RTIL), which had licences to provide telecom services in eight regions and its tower company Reliance Infratel.